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The World Bank Economic Review Advance Access originally published online on December 27, 2005
The World Bank Economic Review 2005 19(3):335-344; doi:10.1093/wber/lhi020
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© The Author 2005. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org.

Tracking NAFTA’s Shadow 10 Years on: Introduction to the Symposium

Daniel Lederman

Daniel Lederman is a senior economist in the Development Research Group at the World Bank; his email address is dlederman{at}worldbank.org.

Luis Servén

Luis Servén is research manager in the Development Research Group at the World Bank, his email address is lserven{at}worldbank.org.

The North American Free Trade Agreement (NAFTA) is arguably the first "case study" of what might be expected from the increasing number of preferential trade agreements involving both developed and developing economies. Ten years after the treaty’s inception, it is time to assess how its outcomes compare with initial expectations. The articles in this symposium issue provide insights into the effects of NAFTA on economic geography, trade, wages and migration, and foreign investment from Mexico’s perspective. The contributions paint a complex post-NAFTA reality characterized by persistent intrabloc trade barriers, interregional inequality within Mexico, labor market outcomes that seem closely tied to migration patterns and international trade and investment, and foreign investment flows that appear weakly related to trade agreements. NAFTA seems to be the first trade agreement in history for which the traditional static trade creation or diversion effects are likely negligible—and hard to identify in any case.


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